Tamil Nadu

South Chennai

CC/281/2013

P.J.Kuriyakku - Complainant(s)

Versus

Indian Overseas Bank, - Opp.Party(s)

M.P.Mohandass

04 Apr 2018

ORDER

                                                                                                                           Date of Filing  : 03.09.2013

                                                                          Date of Order : 04.04.2018

DISTRICT CONSUMER DISPTUES REDRESSAL FORUM, CHENNA (SOUTH)

2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L,                    : PRESIDENT

                 TMT. K. AMALA, M.A. L.L.B.                                :  MEMBER-I

              DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

                                      CC. NO.281 /2013

WEDNESDAY THE 4TH DAY OF APRIL 2018

                                              

P. J. Kuriyakku,

No.20, Jaganathapuram 3^rd Street,

Chetpet - 600 031.                                         .. Complainant

                                                            ..Vs..

 

Indian Overseas Bank,

Rep. by its Chief Manager,

Teynampet Branch,

D.M.S. Campus,

Chennai - 600 006.                                        ..  Opposite party.

 

 

Counsel for complainant                :  M/s. M.P. Mohanndass    

Counsel for opposite party            :  M/s. Suja Associates.

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite party under section  12 of the Consumer Protection Act 1986 seeking direction to pay the difference of interest amount of Rs.660/- from September 2012 to June 2013 and to pay a sum of Rs.50,000/- as damages and mental agony and to pay cost of the complaint.

1. The averments of the complaint in brief are as follows:

          The complainant submit that he had joined the Scheme under Assured Income Plan on 18.2.1987 that the scheme jointly launched by the opposite party  and LIC of India.  The said scheme bearing policy No.71157765.  The policy got matured and the opposite party is appointed as Trustee of the scheme.  As per the policy the opposite party agreed to pay monthly interest of Rs.611.55 to the complainant.   The opposite party confirmed the interest amount by its letter dated 5.3.1999.     Further the complainant state that he was shocked to receive a cheque for lesser amount of Rs.956/- from opposite party instead of payment of Rs.1,223.10 being the two months interest payment under the scheme which is clear violation of terms of the contract.   The complainant sent a letter dated 12.12.2006 to the opposite party for the payment of interest varied from time to time.  But the opposite party sent their reply to the complainant dated 19.7.2007 that the complainant letter forwarded to higher authority.  Despite repeated demands made by the complainant the opposite party failed to pay the interest amount.   Hence the complainant sent legal notice to the opposite party on 29.6.2007 to pay the arrears amount for the interest Rs.611.55 per month from November 2006.   Again the opposite party failed to pay the interest and the complainant is aggrieved by the nonpayment of the interest amount.     As such the act of the opposite party amounts to deficiency in service which caused mental agony and hardship to the complainant.  Hence this complaint is filed.  

2. The brief averments in the written version filed by the opposite party is as follows:

The opposite party deny each and every allegations except those that are specifically admitted herein. The opposite party submit that the complainant is the customer of LIC of India and obtained an Insurance Policy “Anticipated Whole Life”.  Policy No.710157765 for Rs.50,000/- commencing from 1.10.1996.  The policy premium amount was paid in quarterly installments of Rs.861.30.   The last installment payment was paid on 1.7.2006.  As per the said policy and at the request of the complainant, this opposite party was appointed as Special Trustee Under Married Women’s Property Act and the beneficiary being the complainant’s wife, Mrs. Lilly.   The policy came to an end and the entire policy amount of Rs.67,156/- was paid by LIC of India and the complainant deposited the amount in a special fixed deposit scheme commencing from 1.10.2007 to 1.10.2012 at the rate of 11.20 % on his own accord.  At that time the prevailing interest rate was 11.20% for senior citizens.  Subsequently it was renewed by the opposite party at the instance of the complainant for the period from 1.10.2012 to 1.10.2015 at the rate of 10% p.a. as agreed upon by the complainant.   For that period the rate of interest was only 10% for senior citizens and now it is only 9.50% p.a. for senior citizens.    As per the terms and conditions of the policy, this opposite party was empowered to receive the amount of the policy from LIC of India and pay the same to Mrs. Lilly after reimbursing any amount incurred by the opposite party as a Trustee.   The deposit matured on 4.10.2012 and the same was renewed for the further period of 3 years from 1.10.2012 to 1.10.2015 by the complainant with prevailing rate of interest at 10% p.a.  So the interest payable was only Rs.555/- and not Rs.611.55.    Hence there is no deficiency in service on the part of the opposite  parties and the complaint is liable to be dismissed.

3.   In order to prove the averments of the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A9 marked.  Proof affidavit of the opposite party filed and Ex.B1 to Ex.B3  marked on the side of the  opposite party.

4.      The points for consideration is :

Whether the complainant is entitled a sum of Rs.660/- from September 2012 to June 2013 and subsequent month with compensation of Rs.50,000/- towards mental agony with cost as prayed for ?

5.  ON POINT:

        Both parties filed their respective written arguments.  Heard the complainant also.  Perused the records (viz) complaint, proof affidavits and documents.   The complainant pleaded and contended that opposite party introduced in Association with Life Insurance Corporation of India an “Assured Income Plan”  on 18.2.1987 that it will give the following returns namely  1) better investment 2) Bonus combined interest 3) monthly income 4) tax benefits 5) Assured sum to children as per Ex.A1.   The complainant joined in the Assured Income Plan for two beneficiaries (i.e.) the terms of policy is 20 years and assured amount is Rs.50,000/-, monthly income to wife on completion of term of policy is 611.55.  The lump sum payable to wife on death of the policy holder is Rs.1,17,328.20.   Ex.B1 is the copy of the policy.  Further the contention of the  complainant is that the policy got matured and the opposite party appointed as Trustee of the scheme.   Accordingly the opposite party agreed to pay monthly interest of Rs.611.55 to the complainant.   The opposite party also confirmed the said fact in Ex.A2, dated 5.3.1999  mentioned that

Terms of policy                                  - 20 years.

Monthly income to wife (beneficiary) on -  1.223.10 (611.55)

Completion of term of policy.  

 

Monthly income to wife (beneficiary) on

Death of policy holder after completion

Of term of policy                                         :   Rs.2,131.40 (1065.76)

 

 

6.     Further the complainant contended that after due maturity the matured amount was invested as per Ex.B3.  The opposite party has to pay a sum of Rs.611.55 towards monthly interest as agreed.  But to shock and surprise the opposite party sent a cheque for Rs.956/- being two months interest instead of Rs.1,223.10.  Hence the complainant sent a letter dated 12.12.2006 requesting to pay the interest  from time to time.   The opposite party sent a reply Ex.A4 dated 19.7.2007 that the complainant  letter is forwarded  to higher authority.  Thereafter the complainant received a letter, Ex.A5 dated 25.7.2007 stating that “Regarding the bunching of interest for various months we regret for the same and assure you that this problem will not happen in future.”   Further on 10.9.2007 the complainant received another letter Ex.A6 from the opposite party stating that “To keep up the commitment made by the bank at the time of opening the account in 1987 we hereby agree to pay you the contracted amount of Rs.611.55 per month from 1.11.2006”.   Since the opposite party failed to pay the interest as agreed from the inception of policy, the complainant was constrained to issue notice Ex.A3 & Ex.A8  dated 29.6.2007 and 13.2.2013 respectively for which, the opposite party sent a reply Ex.A9; in a vague manner against the completed contract from the beginning.  Hence the complainant was constrained to file this case claiming the difference of the interest amount of Rs.660/- along with compensation of Rs.50,000/- with cost.

7.    The contention of the opposite party is that admittedly the complainant is the customer of LIC of India and obtained an Insurance Policy “Anticipated Whole Life”, Policy No.710157765 for Rs.50,000/- commencing from 1.10.1986.  The policy amount paid in quarterly installments of Rs.861.30.  The last installment payment was paid on 1.7.2006.  At the request of the complainant this opposite party was appointed as Special Trustee Under Married Women’s Property Act and the beneficiary being the complainant’s wife Mrs. Lilly.  But on a careful perusal of Ex.A1 it is apparently clear that the opposite party Indian Overseas bank  in association with Life Insurance Corporation of India introduced the scheme of policy.  Further the contention of the opposite party is that the policy came to an end and the entire policy amount of Rs.67,156/- was paid by Life Insurance Corporation of India and the complainant  deposited that amount in a special fixed deposit (monthly) scheme commencing from 1.10.2007 to 1.10.2012 at the rate of 11.20 % on his own accord.   At that time, the prevailing interest rate was 11.20% for senior citizens.   

8.     Subsequently, it was renewed by the opposite party at the instance of the complainant for the period from 1.10.2012 to 1.10.2015 at the rate of 10% per annum as agreed upon by the complainant.  Thereafter the  rate of interest for senior citizens was reduced 9.50%.   But on a careful perusal of Ex.A1, Ex.A2, Ex.A5 and Ex.A6 the opposite party shall pay interest at the rate of 11.5% p.a, since the policy amount related to the Assured Income Plan for the beneficiary and  “Anticipated Whole Life policy.  But as per Ex.A7 it is seen that the complainant has received interest of Rs.599/- for the month of September 2012.  However the opposite party contended that as per RBI guidelines they are liable to pay Rs.555/- p.m. as interest which is 10% p.a.    Further the contention of the opposite party is that due to change of interest rate by the R.B.I. guidelines the interest amount paid is reduced but the opposite party has not produced RBI guidelines  before this forum.   It is very clear that  from the inception of the policy that the interest shall be paid at the rate 11.50% which is concluded contract for the policy.  Therefore the act of the opposite party  proves the deficiency in service.

9.     Considering the facts and circumstances of the case this forum is of the considered view that the opposite party shall pay difference of interest of Rs.12.55 for the month of September 2012 and Rs.508.95 for the month of October 2012 to June 2013. (Rs.56.55 p.m) totaling of Rs.521.50 rounded to Rs.522/- and shall pay compensation of Rs.5,000/- with cost of Rs.5000/- and the points are answered accordingly.

        In the result the complaint is allowed in part. The opposite party shall pay the difference of interest amount of Rs.522/- (Rupees Five hundred and twenty two only) from September 2012 to June 2013 and shall pay compensation of Rs.5,000/-  (Rupees five thousand only)  with cost of Rs.5000/- (Rupees Five thousand only) to the complainant.

The aboveamounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.  

 

 

 

 

 

Dictated  by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 4^TH  day of April 2018. 

 

MEMBER –I                       MEMBER-II                              PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

Ex.A1		Booklet of Assured Income Plan by the opposite party	Xerox copy
Ex.A2	05.03.1999	Letter by the opposite party	Xerox copy
Ex.A3	29.06.2007	Legal notice by the complainant to the opposite party	Xerox copy
Ex.A4	19.07.2007	Letter by the opposite party to the complainant	Xerox copy
Ex.A5	25.07.2007	Letter by the opposite party to the complainant	Xerox copy
Ex.A6	10.09.2007	Letter by the opposite party to the complainant	Xerox copy
Ex.A7	05.11.2012	Letter by the complainant to the opposite party	Xerox copy
Ex.A8	13.02.2013	Legal notice by the complainant to the opposite party	Xerox copy
Ex.A9	12.03.2013	Reply notice sent by the opposite party to the complainant	Xerox copy

 

OPPOSITE  PARTY SIDE DOCUMENTS:  

Ex.B1	05.10.1987	Insurance Policy commencing from 01.10.1986	Xerox copy
Ex.B2	12.06.2006	Premium Notice for installment payment	Xerox copy
Ex.B3	01.11.2006	Deposit receipt	Xerox copy

 

 

MEMBER –I                       MEMBER-II                              PRESIDENT